Into the winter, the more stringent environmental policy so that the titanium dioxide industry really feel the cold, some manufacturers even because of 'coal to gas' after the tight supply of natural gas was forced to limit production, can be described as worse. The news replaced the original 'price letter' has become a frequent news within the industry.According to incomplete statistics Chung Lung statistics, within three months due to 'cut-limit' the impact of production, reduce production about 48,000 tons.
Specific regions, manufacturers limited production and discontinued as follows:
As shown in the above table, after the fourth quarter of 2017, the environmental protection has been continuously limited and the 'coal to gas' derived from the environmental protection policy has also been 'gas tight' due to the sudden upsurge of demand in North China, resulting in different levels of forced production restriction in different regions. Even gas prices in the region soaring, a 'gas' hard to find, leading to the calcination process can not be carried out.
It is understood that, in addition to titanium dioxide production enterprises, dating back to the raw material of titanium ore, sulfuric acid, downstream to paint, plastic, paper industry, have different levels of production or even shut down.And not only the production enterprises, and even logistics companies, but also because of environmental protection ' Limits' policy have different levels of restriction, focusing on Hebei, Shanxi, Anhui and other air pollution in more serious areas.
Back to the titanium dioxide business.Large to 600000 tons annual capacity of the industry leader Dragon Python Alliance, as small as 20,000 tons annual capacity of manufacturers, are to varying degrees, by environmental policies directly or indirectly.From this we can see: Environmental policy tightening has become normalized.
Compared with the limited production, cut-off, January 1, 2018 come into effect on January 1, the "Green Tax Law", but dwarfs, and industry insiders said the cost impact is limited, but included in the tax laws also pay more and more attention to environmental protection, but also Since then, the actual actions reflect that the environmental protection policy will only gradually tighten and will not be relaxed.
It is an inevitable trend to tighten the normalization of environmental protection policies in 2018, and the titanium dioxide enterprises only have to spend more on waste gas treatment in order to "safely" spend the consolidation period in this industry.